Market Closes - June 2, 2014

Posted on Jun 2, 2014
CBOT futures closed mixed with July Soybean Meal the best performer.  Tightness in old-crop soybeans and thus soybean meal is supporting the market but great planting progress and corn/bean conditions are increasingly offsetting that strength.  With the funds long corn and beans, if/when the scale tips, the price risk may be substantial. The November Soybean chart would look quite negative if price had not climbed back to 12.30. A potential Head-and-Shoulders top would target 11.80 or 11.65 on the downside – the latter matches closely with a 62% retracement of the $1.90 rally from February to May. Key moving averages are also in play.

Live Cattle futures closed mixed on lack of direction in fed cattle prices.  Boxed beef dropped only slightly.   Feeder Cattle futures are testing contract highs and put in record-high closes.

Beyond the nearby June LH contract, futures closed higher as traders anticipate the hog supply will come down due to the PEDv losses in early 2014. Pork value maintained its strength all day. FOB Plant Pork finished up 2.23 to 118.24/cwt.

 Corn Jly unch 465; Dec +1 458 (451-60) Bean Jly +7 1500; Sep -4 1282; Nov -4 1230 Meal jly +6 506; Oct -2 405 Oil -19 3831 Wheat Jly -6 621 (616-27); Dec -6 654 KC -4 719;  MGE -9 697 Oats unch 371 Rice -12 1486

LC Jun -10 13770; Oct +42 14302; Feb -5 14765 FC Aug +52 19757; Oct +47 19890; Mar +10 19170 LH Jun -22 11312; Jly +57 12105; Oct +60 10645 Milk Jun +23 2106; Jly +16 2078

Corn Planting Progress .    6/1/14   5-yr average U.S.    95%        94% KY      94%        92%

 States lagging: MI – 81%, WI 86%

Soybean Planting Progress U.S.     78%         70% KY       52%         47%

U.S. Corn Conditions         Good/Excellent   Poor/V Poor This Week     76%            2% Last Year     63%            7% 

Winter Wheat Conditions – 18 States .        Good/Excellent  Poor/V.Poor This Week       30%           44% Last Week       30%           44% Last year       32%           43%

  Rated Poor/V.Poor: TX-64%, OK-78%, KS-62%, CO-39%

Spring Wheat: 88% planted vs 80% year ago and 88% on average.

U.S. Pasture: 50% good/excellent vs 46% year ago.         19% poor/v.poor vs 25% year ago.

US$ +.3%

Dow +26 16744

SP +1 1925

NAS -5 4237

Tran +44 8148

VIX +.18 11.58

WTI -27 10244

Brent -60 10881

Gas -2 299

NG +7 462

HO -1 288

Eth -3 233

Gold -3 1243

Slvr +7 1875

2-yr +.02 0.391%

5-yr +.06 1.59%

10yr +.07 2.53%

30yr +.05 3.37%

Blue Grass Stockyards Cattle Auction Report for 06/02/2014 Receipts:  927   Last Monday:  no sale Holiday   Year Ago:  1217 Compared to last week steer calves under 500 lbs sold 10.00 to 20.00 higher with very good demand, 500-600 lbs 5.00 to 10.00 higher with very good demand, over 600 lbs sold steady to 3.00 higher with very good demand.  Heifer calves under 500 lbs sold 10.00 to 20.00 higher with very good demand; over 500 lbs sold firm with good demand.  Quality was good through attractive.  Very active market today with more buyer participation and better quality cattle than last week.  Yearling steers and heifers lightly tested.  Slaughter cows sold 1.00 higher with good demand.  Slaughter bulls sold 2.00 higher with good demand.

Total supply included 10% slaughter cows, 01% slaughter bulls, 02% replacements and 87% feeders.  Feeder supply 34% steers, 28% bulls, 38% heifers with 32% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates